Zacks Research Has Optimistic Outlook of CP Q4 Earnings

Key Points

• Zacks Research has increased its Q4 2026 EPS estimate for Canadian Pacific Kansas City to $1.09 per share, up from $1.06.
• The company's latest earnings report showed Q2 revenue of $2.72 billion and an EPS of $0.81, which missed analyst expectations.
• Canadian Pacific Kansas City announced a quarterly dividend increase to $0.1651 per share, reflecting a commitment to returning value to shareholders.

Canadian Pacific Kansas City Limited (NYSE:CP - Free Report) TSE: CP - Analysts at Zacks Research boosted their Q4 2026 EPS estimates for shares of Canadian Pacific Kansas City in a research report issued on Wednesday, August 20th. Zacks Research analyst Team now expects that the transportation company will post earnings of $1.09 per share for the quarter, up from their prior forecast of $1.06. The consensus estimate for Canadian Pacific Kansas City's current full-year earnings is $3.42 per share. Zacks Research also issued estimates for Canadian Pacific Kansas City's Q2 2027 earnings at $1.07 EPS and FY2027 earnings at $4.41 EPS.

Canadian Pacific Kansas City (NYSE:CP - Get Free Report) TSE: CP last issued its quarterly earnings results on Wednesday, July 30th. The transportation company reported $0.81 earnings per share for the quarter, missing analysts' consensus estimates of $0.82 by ($0.01). Canadian Pacific Kansas City had a return on equity of 8.69% and a net margin of 28.05%.The business had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.76 billion. During the same quarter in the prior year, the company earned $1.05 EPS. The firm's revenue for the quarter was up 2.7% on a year-over-year basis.

Other equities research analysts also recently issued reports about the company. Royal Bank Of Canada lowered their price objective on shares of Canadian Pacific Kansas City from $122.00 to $121.00 and set an "outperform" rating on the stock in a research report on Thursday, May 1st. Barclays raised their target price on shares of Canadian Pacific Kansas City from $87.00 to $91.00 and gave the stock an "overweight" rating in a research note on Thursday, July 10th. Citigroup lifted their target price on shares of Canadian Pacific Kansas City from $89.00 to $94.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. The Goldman Sachs Group reiterated a "neutral" rating and set a $91.00 price target on shares of Canadian Pacific Kansas City in a research note on Monday, June 2nd. Finally, Susquehanna restated a "positive" rating and issued a $94.00 price objective (up previously from $90.00) on shares of Canadian Pacific Kansas City in a research report on Tuesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $92.30.

Canadian Pacific Kansas City Stock Performance

Shares of CP stock opened at $73.2640 on Friday. Canadian Pacific Kansas City has a 52-week low of $66.49 and a 52-week high of $87.72. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 0.45. The stock's 50-day moving average price is $77.88 and its 200 day moving average price is $76.63. The stock has a market capitalization of $66.94 billion, a PE ratio of 22.82, a price-to-earnings-growth ratio of 2.08 and a beta of 1.06.

Canadian Pacific Kansas City Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 27th. Investors of record on Friday, September 26th will be issued a dividend of $0.1651 per share. This is an increase from Canadian Pacific Kansas City's previous quarterly dividend of $0.16. This represents a $0.66 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Friday, September 26th. Canadian Pacific Kansas City's payout ratio is presently 20.56%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in shares of Canadian Pacific Kansas City in the 2nd quarter worth approximately $1,012,065,000. JPMorgan Chase & Co. raised its holdings in Canadian Pacific Kansas City by 87.2% during the second quarter. JPMorgan Chase & Co. now owns 16,000,064 shares of the transportation company's stock worth $1,268,325,000 after purchasing an additional 7,454,810 shares during the last quarter. Invesco Ltd. boosted its position in Canadian Pacific Kansas City by 59.5% during the first quarter. Invesco Ltd. now owns 16,984,351 shares of the transportation company's stock worth $1,192,471,000 after purchasing an additional 6,337,312 shares in the last quarter. Fisher Asset Management LLC grew its holdings in Canadian Pacific Kansas City by 281.0% in the second quarter. Fisher Asset Management LLC now owns 5,431,316 shares of the transportation company's stock valued at $430,540,000 after purchasing an additional 4,005,942 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in Canadian Pacific Kansas City by 70.4% in the first quarter. Goldman Sachs Group Inc. now owns 9,299,753 shares of the transportation company's stock valued at $652,936,000 after purchasing an additional 3,842,866 shares during the last quarter. 72.20% of the stock is owned by hedge funds and other institutional investors.

Canadian Pacific Kansas City Company Profile

Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The company transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers.

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